www.msnbc.msn.com/id/15626611
Election could be good and bad for Wal-Mart Minimum wage hike would help customers, but Dems may hold hearings Image: Wal-Mart Store Paul Sakuma / AP file Even a small minimum wage increase would mean more cash for lower-income households that could be spent at Wal-Mart, said fund manager Patricia Edwards. But Democrats and their base have attacked the retailer on wages and health care.
Nancy Pelosi, set to become the new House leader, said raising the base wage for the first time since 1997 would be one of the Democrats' legislative priorities for the 110th Congress that opens in January. Wal-Mart Chief Executive Officer Lee Scott has backed an increase, saying many Wal-Mart customers are low-income families that struggle from month to month. "We feel the federal minimum wage should be increased and it is up to Congress to decide what that number should be. We are not lobbying for any particular bill," Wal-Mart spokesman David Tovar said. Even a small increase would mean more cash for lower-income households that could be spent at Wal-Mart, said fund manager Patricia Edwards. "I don't think it's going to be a major factor either way" on costs or new spending, Gher said. Gher said the main concern for Wal-Mart will be whether Democrats use their newfound power to hold congressional hearings on issues like health insurance, wages and labor practices, where Wal-Mart has been criticized by unions and some Democrats. "They've used Wal-Mart as a whipping boy before and that's an indication that they are going to continue. I think we'll see more negative press coming out of hearings like that," Gher said. Democrats in the House and possibly Senate can be expected to call Wal-Mart executives on the carpet as part of broader hearings aimed at putting pressure on corporate America to improve health insurance and keep more jobs at home, said Gary N Chaison, professor of industrial relations at Clark University in Worcester, Mass. "Wal-Mart is huge and more people know its name, so it gets attention," Chaison said. "I think Wal-Mart representatives should be preparing already to make their case in front of congressional hearings on employment practices and health care," he said.
Union-backed critics and some Democrats have accused Wal-Mart of skimpy pay and health insurance for its more than 13 million US workers and pushing some onto taxpayer-funded health plans like Medicaid. Wal-Mart has defended its wages and record of job creation. It has also introduced lower premium health plans for as little as $11 a month in some areas and has cut prices for some generic drugs to $4 for a 30-day prescription in 27 states, with more states to come.
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